The cryptocurrency market is witnessing a tale of two investors as the price of Shiba Inu (SHIB) plummets. While some scramble to sell their holdings amidst the downturn, a mysterious whale has made a massive splash, gobbling up a staggering 583.7 billion SHIB tokens from Binance.
This audacious move comes as SHIB struggles in the $0.000015 region, a significant drop from its May 29th high of $0.00002945 – a decline exceeding 45%. This price plunge has broken a crucial support level and pushed the meme coin to a 19-week low.
Buying the Dip: A Whale’s Calculated Risk?
The whale’s hefty purchase has sparked a wave of speculation. While the market experiences a downturn, some investors see this as a golden opportunity to “buy the dip.” This recent whale activity might be a sign of such confidence.
Lookonchain, a blockchain analytics platform, pinpointed the transaction, which occurred on June 19th. At the time of purchase, SHIB hovered around $0.00001666, making the whale’s investment roughly $9.725 million. Notably, buying the same amount at the May 29th peak would have cost a whopping $17.192 million, representing a potential saving of $7.4 million.
This whale didn’t limit their shopping spree to just SHIB. On-chain data reveals a broader buying frenzy, encompassing other cryptocurrencies like Ethereum (ETH), PEPE, BNB, FLOKI, DOGE, USDT, and MATIC, for a total of roughly $130 million within a mere six hours. However, the market’s sharp decline has shrunk the portfolio’s value to approximately $117.8 million.
Shiba Inu Exodus from Exchanges
The whale’s actions align with a broader trend of SHIB withdrawals from exchanges. Since June 1st, CryptoQuant’s SHIB Exchange Netflow metric indicates only a handful of days with positive inflows, while negative netflows dominated the past month. This period witnessed a net outflow of a staggering 7.823 trillion SHIB – the largest since January.
The Crypto Basic has documented several significant withdrawals, with whales pulling out over 2.55 trillion SHIB from Robinhood and Binance on June 20th alone. Similar outflows were confirmed last week, potentially mirroring a trend seen in January before a substantial price surge.
Shiba Inu’s Future: Uncertain But Hopeful
Despite the ongoing withdrawals and the whale’s gamble, SHIB remains under pressure, currently trading at $0.00001584. Analysts, however, haven’t entirely ruled out a potential recovery.
Also Read: Shiba Inu Spot ETF Next? 80% Of Past Coins With Futures Got ETFs
The cryptocurrency market is notoriously unpredictable, and this whale’s bold moves could signal a turning point for SHIB. Only time will tell if the meme coin can defy the odds and bounce back.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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